The Electricity Company of Ghana (ECG) has secured a decisive legal victory in London after an international arbitration tribunal dismissed all claims brought against it by Power Distribution Services Ghana Limited (PDS).

According to a report by Citi Newsroom, the ruling concludes nearly three years of legal proceedings and brings closure to a long-running dispute over the controversial termination of PDS’s concession agreement with ECG.

The dispute dates back to 2019, when PDS took over the management of ECG under a 20-year concession deal, part of the Millennium Challenge Compact (MCC) between the Government of Ghana and the U.S. Millennium Challenge Corporation. The arrangement was intended to enhance power distribution efficiency through private-sector participation.

However, the government suspended and subsequently terminated the concession after it emerged that the payment guarantees provided by PDS — through Al Koot Insurance and Reinsurance Company of Qatar — were fraudulent. These guarantees were a key requirement of the deal, meant to secure PDS’s financial obligations.

Investigations revealed that Al Koot had not authorised the guarantees, and subsequent court rulings in Qatar, including by the Court of Cassation, confirmed that the documents were indeed forged.

In response, PDS filed for arbitration in London, seeking a declaration that ECG had wrongfully terminated the concession. The company demanded approximately US$39.4 million in direct costs and alleged lost profits of about US$351.5 million.

Represented by Omnia Strategy LLP, led by Cherie Blair KC, ECG defended its decision, arguing that the termination was lawful, justified, and necessary to protect Ghana’s national interest. The company maintained that PDS’s failure to verify the authenticity of the guarantees fatally undermined the entire concession.

After extensive hearings, the tribunal dismissed all of PDS’s claims in full, affirming ECG’s position that the fraudulent guarantees were central to the agreement and warranted termination.

The ruling marks a significant win for ECG and the Government of Ghana, preventing potential financial losses amounting to hundreds of millions of dollars.

It also brings an end to one of the most contentious episodes in Ghana’s recent energy sector history, reinforcing the legitimacy of ECG’s actions in safeguarding public assets.